New Zealand Financial Markets Authority publishes thematic review findings on product and service reviews by deposit takers and insurers

The New Zealand Financial Markets Authority (FMA) has published a thematic review on how financial institutions assess and review their products and services to ensure they continue to meet consumers’ requirements and objectives, in line with minimum fair conduct programme expectations under the Conduct of Financial Institutions (CoFI) regime. The report shares examples of good practice and highlights recurring challenges and areas for improvement, noting it does not create new legal obligations. The review covers a sample of ten deposit takers and ten insurers and found all participants complete product and service reviews, but approaches vary widely in objectives, cadence, scope, governance and reporting. Typical scheduled reviews run on a one-to-three-year cycle alongside reactive triggers such as complaints and material product or environmental changes, with the FMA flagging risks from overreliance on reactive triggers or rigid cycles. Key areas of focus include maintaining a clear consumer lens (including for vulnerable consumers and target markets), ensuring off-sale and legacy products are reviewed sufficiently, broadening inputs beyond internal metrics to include intermediaries and dispute resolution schemes, assessing system and technology constraints (including legacy systems), and strengthening governance through clearer escalation, board-level oversight and more consistent communication of outcomes to affected consumers. The FMA encourages all financial institutions to use the commentary and examples to improve their review practices and notes that proactive product and service reviews will remain a continuing area of supervisory interest.